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Group 1 Automotive (GPI) Up 6.2% Since Q2 Earnings & Sales Beat

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Group 1 Automotive, Inc. (GPI - Free Report) announced second-quarter 2021 results on Jul 29, before the opening bell. The company’s comprehensive beat and improved year-over-year performance pushed the stock higher, resulting in a rally of 6.2% since the announcement of quarterly results.

Group 1 Automotive reported adjusted earnings per share of $10.31 for second-quarter 2021, marginally beating the Zacks Consensus Estimate of $10.1. This outperformance stemmed from the higher-than-anticipated gross profit from all the segments of the company. Moreover, the bottom line comes in significantly higher than the prior-year quarter’s $3.77 per share, marking a whopping growth of 173.6%.  

The automotive retailer registered net sales of $3,700 million, topping the Zacks Consensus Estimate of $3,342 million. Also, the top-line figure comes in 73.6% higher than the year-ago quarter’s $2,131.2 million.

Group 1 Automotive, Inc. Price, Consensus and EPS Surprise

Group 1 Automotive, Inc. Price, Consensus and EPS Surprise

Group 1 Automotive, Inc. price-consensus-eps-surprise-chart | Group 1 Automotive, Inc. Quote

Q2 Highlights

New-vehicle retail sales jumped 74.6% from the prior-year quarter to $1,855.3 million. In addition, the figure exceeded the Zacks Consensus Estimate of $1,591 million. Also, gross profit from the unit totaled $165.3 million, soaring 159.2% year over year. The reported profit figure also surpassed the consensus mark of $102 million.

Used-vehicle retail sales rose 86.5% from the year-ago period to $1,195.6 million. The sales figure also outpaced the consensus mark of $917 million. Further, gross profit from the unit summed $109.1 million, soaring 135.8% year over year. The reported profit figure also beat the consensus mark of $60 million.

Used-vehicle wholesale sales surged 98% from the corresponding quarter last year to $96.4 million, beating the consensus mark of $73 million. Gross profit from used-vehicle wholesale sales amounted to $9.1 million compared with the $2 million reported in the year-ago period. The reported figure also handily surpassed the consensus mark of $2.9 million.

For the Parts and Service business, the top line rose 39.1% from the year-ago period to $392.1 million. In addition, the revenue figure topped the Zacks Consensus Estimate of $367 million. Gross profit from the segment summed $216.7 million, climbing 44.5% year on year and breezing past the consensus mark of $200 million.

Revenues from the Finance and Insurance business grew 66.5% from the prior-year period to $161 million, topping the consensus mark of $132 million. Segmental gross profit of $161 million grew 66.5% on a yearly basis and also trumped the consensus estimate of $132 million.

Segments in Detail

For the reported quarter, revenues in the U.S. business segment climbed 59.7% year on year to $2,924.93 million. The segment’s gross profit also scaled up 72.9% year over year to $561.1 million. During the June-end quarter, retail new-vehicle, used-vehicle, and wholesale used-vehicle units sold were 34,047, 34,008 and 6,606, respectively.

For the April-June period, revenues skyrocketed 165.9% year over year to $700.7 million for the U.K. business segment. Also, gross profit summed $88.4 million, up a whopping 200.6% from the second quarter of 2020. During the reported quarter, retail new-vehicle, used-vehicle, and wholesale used-vehicle units sold were 7,395, 10,494 and 4,124, respectively.

Revenues for the Brazil business segment surged 104.5% year over year to $74.8 million during the second quarter. Further, the segment’s gross profit increased 138.6% year over year to $11.8 million. In the reported quarter, retail new-vehicle, used-vehicle and wholesale used-vehicle units sold were 1,451, 500 and 235, respectively.

Financial Position & Buyback

Group 1 Automotive had cash and cash equivalents of $198.7 million as of Jun 30, 2021, up from $72.7 million in the corresponding period of 2020. Long-term debt totaled $1,381.3 million as of Jun 30, 2021, up from $1,360.7 million recorded in the comparable period of 2020.

During the second quarter, the company repurchased 125,000 shares at an average price of $148.79, for a total of $18.6 million.  The company has $150 million remaining in its authorized share-repurchase program.

Group 1 Automotive, peers of which include AutoNation (AN - Free Report) , Lithia Motors (LAD - Free Report) and Penske Automotive (PAG - Free Report) , currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.